TSMC adds $100 billion to US chip buildout

TSMC said Thursday it will spend another $100 billion to expand its manufacturing capacity in the United States, pushing its total pledged investment in US chipmaking to $265 billion.

The company, formally known as Taiwan Semiconductor Manufacturing Co., had already committed $165 billion for plants in Arizona, where six fabrication facilities are planned. The new spending, CEO and chairman C.C. Wei said during the company’s quarterly earnings call, is meant to support long-term demand from its biggest American customers.

“We believe this investment will help to further foster the development of the U.S. semiconductor ecosystem, strengthen the supply chain and support an increasing number of high-tech, high-paying jobs in the United States.”

TSMC also raised its capital spending outlook for the year to $60 billion-$64 billion, up from its earlier forecast of $52 billion-$56 billion. The company said AI-related demand remains “extremely robust,” with Wei adding that the “AI megatrend” continues to drive demand for more computing power.

The company is a crucial supplier to Nvidia and Apple, and its performance is widely watched as a signal for both the broader semiconductor market and the current AI boom. On Thursday, TSMC reported a record 706.6 billion new Taiwan dollars ($22 billion) in net profit for the April-June quarter, up 77% from a year earlier and ahead of analysts' expectations.

As demand keeps rising, TSMC is continuing to expand fabrication capacity in the US, Japan, and Taiwan.

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